Not too long ago, Mexico and other parts of Latin America only had e-commerce make up about 2% of their total GDP. 

However, with the COVID-19 pandemic rampant, movements in the economy have drastically changed that trajectory.

Keep reading to find out about e-commerce growth in Mexico and how Alibaba are taking advantage of the demand for e-commerce in the region!

Mexico’s E-Commerce Growth

Since the start of the pandemic, Mexico has seen a significant increase in e-commerce usage. 

A study by Statista reveals that in the month of April, Mexico’s e-commerce revenue increased by 500%!

E-commerce growth in Mexico

The main reason for buying online, unsurprisingly, was to avoid going out during the COVID-19 pandemic. People feel safer shopping online since they can avoid crowds and receive their purchases right at their doorstep! 

Initially, most people were only buying basic necessities such as food and groceries online. However, as quarantine has extended to over 4+ months, people have started to shop in other categories. 

In fact, categories such as technology, fashion & accessories, and personal care have seen a 41%, 29%, and 21% increase in purchase interest, respectively

The Mexican Association of Online Sales (AMVO) released their findings in a report on COVID-19’s impact on online sales in Mexico. In terms of new buyers, food delivery and fashion products drew the highest percentage! For services, internet banking and bill payments attracted the major part of e-commerce newcomers.

With all this said, the growth in Mexico’s e-commerce is not something that’s temporary! It’s actually far from it.

Two out of ten Mexican shoppers claim they will continue to make more purchases online after the pandemic, according to the AMVO report listed earlier.

COVID-19 has progressed Mexico’s shift towards e-commerce faster than anyone expected, that’s for sure. However, the change is here to stay! 

With this in mind, companies like Alibaba have created new initiatives to capitalize on this shift towards e-Commerce. Keep reading to find out more!

Alibaba’s E-Commerce Initiative in Mexico

Alibaba recently announced an e-commerce program in partnership with GINgroup, an enterprise conglomerate.

Alibaba's partnership with GINgroup for e-commerce education

The primary goal is to promote and develop e-commerce skills within Mexico. The initiative includes the following:

  • Global e-commerce talent program (GET): GINgroup will be training and certifying 200 people through this program from Alibaba
  • Digital Villages: Alibaba plans on building digital villages in around 32 Mexican states. Within each of these digital villages, Alibaba wants to train 1,000 university students and launch 50 micro businesses.

While this is definitely Alibaba’s way of entering the Mexican e-commerce market, it definitely has its advantages for the people and the overall economy. 

Also, this is not Alibaba’s first attempt with digital villages. In fact, they’ve been working on it in China for over 10 years! 

The main challenge Alibaba will likely face is implementing its initiative in more rural states of the country. However, if successful, this initiative will open doors to a whole new level of e-commerce growth in Mexico! 

Growing Your E-Commerce Business in Mexico 

If you want to get some footing in the growing Mexican E-Commerce market, contact us at hola@colibricontent.com. In the meantime, feel free to check out our insights on the latest business news and trends in Latin America!


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